Does bank efficiency affect the bank lending channel in China?

Arbeitspapier

This work examines the impact of bank efficiency on the bank lending channel in China. Using a sample of 175 Chinese banks over the period 2006-2017, we investigate how the reaction of the loan supply to monetary policy actions depends on a bank's efficiency. While bank efficiency does not exert an impact on the effectiveness of monetary policy transmission overall, it does favor the transmission of monetary policy for banks with low loan-to-deposit ratios. In addition, the expansion of shadow banking activities has been associated with a positive impact of bank efficiency on monetary policy transmission. These results suggest that bank efficiency may influence the bank lending channel in certain cases.

Object Details

• ISBN: 978-952-323-364-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BOFIT Discussion Papers ; No. 3/2021

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: Chinese banks ; monetary policy ; bank efficiency ; bank lending channel

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fungáčová, Zuzana ; Kerola, Eeva ; Weill, Laurent
• Event: Veröffentlichung
• (who): Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT)
• (where): Helsinki
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/240381
• Last update: 10.03.2025, 11:43 AM CET